Sydney earns rip-off reputation

Marvelling at the architecture of the Sydney Opera House or sunbathing on Bondi beach are essentials for most tourists visiting Australia's former Olympic city. Some gullible visitors, however, are being charged for the privilege by unscrupulous guides who are tarnishing the city's image, according to a report.

The study, commissioned by the Tourism Business Alliance and released yesterday, says that as well as being charged to see free landmarks, tourists are being tricked out of their money in under-the-counter foreign exchange deals.

Thousands are transported to so-called tax-free shopping outlets that turn out to be warehouses selling goods at inflated prices. Others pay vastly inflated prices for souvenirs, such as $1,200 (£490) for a sheepskin rug or A$40 to A$50 for a packet of macadamia nuts. The real prices are about a fifth of those. Naive visitors are also being sold a product called Essence of Kangaroo, made of meat extract, which is presented as an aphrodisiac.

"They pay for what they believe will be a five-star experience but the reality is well short of that mark," the report says. "There is little evidence of any regard for the consumer rights of foreign tourists."

Matthew Hingerty, the managing director of the Australian Tourism Export Council, said: "People from countries like Hong Kong, China and Taiwan are relatively new to travel and are much more innocent than other visitors. Tourists from the UK are more savvy. They do a lot of research ... and know how to get the best value out of their holidays."

Although the number of visitors to Australia rose by 4% last year, many are said to be spending shorter periods in Sydney because of the expense of staying there.

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